China Cord Blood Corporation Receives Notice of Transactions Regarding its 7% Senior Convertible Notes Due 2017

Aug 26, 2015, 08:00 ET from China Cord Blood Corporation

HONG KONG, Aug. 26, 2015 /PRNewswire/ -- China Cord Blood Corporation (NYSE: CO) (the "Company"), China's leading provider of cord blood collection, laboratory testing, hematopoietic stem cell processing and stem cell storage services, today announced that the Company has been informed that Magnum Opus 2 International Holdings Limited ("MO2"), an entity wholly owned by Mr. Yuen Kam, chairman of the board of directors of the Company, has acquired the outstanding shares (the "Shares") of  Excellent China Healthcare Investment Limited ("KKR SPV") from Brilliant China Healthcare Investment Limited (the "Seller") (formerly known as KKR China Healthcare Investment Limited).  KKR SPV was a wholly owned subsidiary of the Seller and the current holder of US$65 million in aggregate principal amount of the Company's outstanding 7% senior convertible notes due 2017 (the "KKR Notes").  Under the share purchase agreement, MO2 has paid a portion of the purchase price equal to US$80 million and has agreed to pay the remaining purchase price (approximately US$79.9 million and accrued interest and additional payment, if any) on or before October 28, 2015.  MO2 has also granted a charge on the Shares in favor of the Seller to secure its obligation to pay the remaining purchase price. Concurrently with the execution of the share purchase agreement, the Seller and Golden Meditech Holdings Limited, a Hong Kong listed company and a substantial shareholder of the Company ("Golden Meditech"), terminated the previously announced purchase agreement, dated as of May 4, 2015, in relation to the purchase and sale of the KKR Notes by Golden Meditech. 

The purchase price for the Shares is currently estimated to be approximately US$159.9 million plus interest accrued on the KKR Notes from April 27, 2015 to the date of payment of the remaining purchase price. The purchase price stated in the share purchase agreement is commensurate with the consideration that was payable by Golden Meditech under the previously announced purchase agreement.

The purchase price under the share purchase agreement is subject to possible adjustment in connection with (i) any distributions on the ordinary shares of the Company and (ii) any changes to the current offer price of $6.40 per ordinary share reflected in Golden Meditech's previously announced proposed "going-private" transaction involving the Company, in each case in accordance with the terms of the share purchase agreement.

Mr. Yuen Kam has also issued a letter of undertaking (the "Undertaking Letter") to Golden Meditech.  According to the Undertaking Letter, subject to certain conditions, Mr. Yuen Kam undertook to procure KKR SPV to enter into an option deed in relation to KKR SPV granting Golden Meditech a call option to acquire the KKR Notes for consideration equal to the purchase price under the share purchase agreement. 

About China Cord Blood Corporation

China Cord Blood Corporation is the first and largest umbilical cord blood banking operator in China in terms of geographical coverage and the only cord blood banking operator with multiple licenses. Under current PRC government regulations, only one licensed cord blood banking operator is permitted to operate in each licensed region and only seven licenses have been authorized as of today. China Cord Blood Corporation provides cord blood collection, laboratory testing, hematopoietic stem cell processing and stem cell storage services. For more information, please visit our website at http://www.chinacordbloodcorp.com.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. These statements relate to future events or the Company's future financial performance. The Company has attempted to identify forward-looking statements by terminology including "anticipates", "believes", "expects", "can", "continue", "could", "estimates", "intends", "may", "plans", "potential", "predict", "should" or "will" or the negative of these terms or other comparable terminology. These statements are only predictions, uncertainties and other factors may cause the Company's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. The information in this press release is not intended to project future performance of the Company. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company does not guarantee future results, levels of activity, performance or achievements. The Company expectations are as of the date this press release is issued, and the Company does not intend to update any of the forward-looking statements after the date this press release is issued to conform these statements to actual results, unless required by law.

For more information, please contact:

China Cord Blood Corporation Investor Relations Department Tel: (+852) 3605-8180 Email: ir@chinacordbloodcorp.com

ICR, Inc. William Zima Tel: (+86) 10-6583-7511 U.S. Tel: (646) 405-5185 Email: William.zima@icrinc.com

SOURCE China Cord Blood Corporation



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http://www.chinacordbloodcorp.com